This chapter provides insights into recent multifaceted immigration processes in Austria’s capital, their effects on segregation and the municipal answers to these processes. Vienna has been a magnet for former ‘guestworkers’ from Turkey and ex-Yugoslavia, migrants from Eastern European EU countries and asylum-seekers. In 2015, Vienna saw an all-time high in net migration when the so-called ‘refugee crisis’ brought asylum-seekers from the Middle East and Afghanistan in large numbers. These immigration processes, together with economic, housing-market-related, welfare, political and historical factors have all left their specific mark on patterns of segregation. The way this immigration became reflected in space firmly relates to the segmentation of Vienna’s housing market and the capital’s diversity policy. Vienna’s housing market is characterized by communal interventions, a considerably older stock and a uniquely high proportion of communal housing. The city pursues a specific form of urban social-welfare policy stimulating implicit integration measures in fields like municipal housing, compulsory education and financial assistance. Map analysis proves that integration problems are noticeable but are not really manifest in spatial terms. Thus, increasing levels of segregation were prevented by the instruments of an ‘urban welfare policy’. The fundamental difference compared to most other European metropolises is that neoliberal trends have been cushioned in Vienna’s integration-oriented diversity policy by an established network of social-welfare institutions and subsidies.